Advantages & disadvantages of using a bridging loan broker for your funding. Guide to financing for investors in the UK.

Why Should I Use a Bridging Finance Broker?

If you need to raise funds quickly, and you are sat waiting for assets to sell, you might want turn to  the experts to find you a good deal.   Bridging finance is a short-term solution requiring specialist guidance.  It is important to take expert advice to ensure your funding is as cost effective as it can be. 

Bridging Finance Brokers are used to finding unique resolutions that will suit your particular situation and circumstances.   If you have assets that you are waiting to sell, and you have little time to organise conventional financing options then bridging loans can offer a viable solution. Professional Advisors are experts in their field.  They know the pitfalls to avoid.  They can make recommendations for you based on your own personal experience and financial history.

Good Bridging Finance Companies Can Help with Pre-Assessments

It is in the interest of any kind Financial Broker to know their products and the requirements of each.  A good broker will be able to guide you on whether they think a particular product will suit your needs. They should also know the lenders requirements so are able to pre-vet borrowers’ circumstances.  This can prove invaluable in eliminating the need for multiple credit checks, additional paperwork and a lot of wasted time.

You may think that going directly to a lender can be more cost efficient, but you can easily find yourself completing multiple applications. Or being asked to produce more and more documentation as the application process progresses.  The market is notoriously fickle.   It is common for lenders to ‘move the goal posts’ even while the application process is ongoing.

A Good Bridging Loan Broker Can Save You Money

This too comes down to fact that Brokers know the marketplace and the products that are available.   Our experienced advisors can steer borrowers towards the least expensive products based on their own personal circumstances.  As most bridging lending is considered on an individual basis (rather than using a computer algorithm), your broker will negotiate on your behalf and secure the best rates possible.  He/she can intervene to offer mitigating circumstances on your behalf, should there be any negatives in your application.   He/she is on your side at all times.

The cheapest deals are not necessarily the best ones.  There may be hidden fees and penalties that add up and make the headline offers less appealing.  A good advisor should negotiate the minefield and ask the right questions on your behalf.  He/she has a vested interest in making sure that your deal goes through, else they don’t get paid. 

A broker can also save you a great deal of time searching for and comparing the different deals that are available.  They can stop you wasting time and effort on unsuccessful applications – these have to be declared on any new application.  Continuous credit checks can negatively affect not just subsequent applications, but your credit score generally so you would be wise to avoid them at all costs.

Bridging Loan Companies Can Make the Process Less Stressful

When you are backed into a corner and have limited time available you may find that a broker can help alleviate the stress and strain of sorting out bridging finance.   Without one you could find yourself in the position of constantly having to going back and fore with various bits of information between the various parties.  Your broker can act as the ‘middle-man’ between lender, banks, solicitors and others involved in the sale and purchase.

An experienced broker also understands the time scales involved in each part of the process.  He/she can take control and manage the situation on your behalf which relieves the stress of having to do this all by yourself.

Ultimately, the main benefit of using a Bridging Loan Broker is that they are independent of the lender and will work on your behalf and support you every step of the way.  They can warn you of the pitfalls, guide you on the best deals available to you, and help to make the whole experience as smooth as it possibly can be.